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2010 World Cup ReadinessPresentation to the Joint Committee

19 May 2010

CONTENTS

• Liquid Fuels• Key Constraints Identified and Operational Plans per

Airport

• Electricity• Grid Supply• Precinct supply

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LIQUID FUEL

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NATIONAL SUPPLY AND DEMAND

• Consolidated supply plans for all fuels (petrol, diesel and jet fuel) indicate that nationally adequate fuel will be supplied to meet demand

• Oil industry will also maintain contingency stocks at their refineries which will be available to supply the market in the case of a supply disruption

• Operational plans have been put in place at all airports where constraints were identified

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OPERATIONAL PLANS AT ORTIA

OPERATIONAL PLAN PROGRESS

STORAGE

Construction and commissioning of two new tanks •Complete•Tanks have now also been connected directly to hydrants

Pre-filling of 2 new tanks optimal capacity •Initial pre-fill proceeded successfully•Tanks will be at optimal capacity on 1 June

32 full Rail Tank Cars will always be available at ORTIA in case of low stock levels

•Additional Rail Tank Cars have already been added to the fleet•This will be implemented between 1 June to 31 July

IMPROVEMENT OF TURNAROUND TIME FOR CERTIFICATION OF JET FUEL

In order to improve turnaround times of certification of Jet

Fuel from DJP, certification will take place at an Inland

refinery instead of the coastal refineries

1 June to 31 August

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OPERATIONAL PLANS AT ORTIA

OPERATIONAL PLAN PROGRESS

IMPROVEMENT OF COORDINATION

Daily demand and stock forecast which look forward 6 weeks

instead of the normal 1 week window has been implemented.

This will also be used for daily monitoring during the tournament

•In progress

The granting of the exemption to the oil industry by the

Competitions Commission has allows for industry forums which

enable joint and coordinated planning to resume during the period

of the World Cup

•The Logistics Planning Committee has been established to deal

with daily/routine monitoring as well as to manage emergency

situations

•Other industry forums that are necessary for effective planning

are also currently taking place

•Routine to start in June

•Emergency currently in place for

Transnet Strike

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OPERATIONAL PLANS AT ORTIA

OPERATIONAL PLAN TIMEFRAME

OPTIMISE USE OF LOGISTICS

The pipeline from the inland refinery will be operating at maximum capacity

to ensure most effective use of inland pipeline infrastructure

•1 June to 31 July

Additional rail deliveries will also take place from Matola to ensure

increased supply to the airport (1 block train per week)

8 June to 15 July

Addition of Rail Tank Cars to the current fleet means that 2 block train

deliveries instead of 1 can be made to the airport per day. This will

increase supply to the airport by approximately 50%.

Complete

Coastal companies have also increased their loading capability to ensure

that they will be able to load 2 adequate fuel to make up the 2 block trains

In progress

Airport operator will also increase rail offloading capability at ORTIA to

ensure they can offload two block trains per day

•Will be implemented

between 1 June to 31 July

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IMPACT OF TRANSNET STRIKE• Products

– Jet fuel least impacted as it continues to be prioritised. Contingency measures have been put in place to minimise the impact of the strike on the supply of jet fuel

– Petrol and Diesel supply constrained in certain areas– LPG– Paraffin

• Logistics– The strike is causing challenges with regards to the ability to distribute

product to the market– In certain cases logistics operating sub-optimally– For most areas the problems are not insurmountable

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IMPACT OF TRANSNET STRIKE• Transnet is working cooperatively with the oil industry to ensure that

contingency measures are executed to ensure critical supply is maintained

• Most of the industry participants have given the Department assurance that despite the strike, they are still ready to supply during the World Cup and that all plans which have been made to date still stand.

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ELECTRICITY

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ELECTRICITY.• Grid Supply: (area covered)

– General Host City lighting (incl street lights).

– Hotels, Team, Base-camps, PVA.– Stadium Supply (firm supply)

• Precinct Supply: (area covered)

– Floodlights– Broadcast Camp– Domestic Load

GRID SUPPLY: STATUS OF PROJECTSHOST CITY PROJECT PROJECT SCOPE

Nelson MandelaMount Road substation

Project completed and energized

eThekwini Old Fort substationProject completed and energized

City of Cape Town

Mouille Point substation

Project completed and energized

City of Johannesburg

Crown substationProject completed and energized

Mangaung Willows substationProject completed and energized

GRID SUPPLY: STATUS OF PROJECTS

HOST CITY PROJECT PROJECT SCOPE

Polokwane Beta substation Project completed and energized

MbombelaMataffin substation.

Construction 90%Commissioning 75%[Completed by 31 May 2010 ]

City of TshwaneSkinner 132kV line

Project completed and energized

RustenburgWaterkloof substation.

Construction at 85%Commissioning 0%[ Change in the original plan to meet the June]

RISK: Rustenburg

Construction of feeder lines has been completed.

Installation of cables has been completed.

Installation of switchgear at Waterkloof substation in progress.

Plans to install feeder line to the substation are currently underway

Rustenburg• Areas at risk

– Grid Supply: • General Host City lighting (incl street lights).

• Hotels, Team, Base-camps, PVA.

• Alternative Plan – Original Plan supply from Eskom substation.– Alternative supply from another neighbouring

substation. – Alternative supply to be completed by end May

2010 to ensure security of supply for Rustenburg.

RISK: Mbombela

Construction of the substation has been completed (100%) and the substation is energized and already supplying the stadium.

The alternative feeder that will act as backup supply is currently in progress and will be completed by 31 May 2010.

The 75% progress to date represents the total project including construction of the backup supply. All poles installed and cable stringing is at 75%.

The total progress is broken down as:

o Substation - 100% (Energized and operational)

o 132kV Alternative (backup) feeder line - 75%

PRECINT SUPPLY

• Ten stadiums in total

• Each venue: (area covered)LOAD GRID/ GENERATOR RESPONSIBILITY

FLOOLIGHTS DIESEL GEN UPS GRID

STADIUM OWNER

BROADCAST DIESEL GENERATORS LOC

DOMESTIC GRID GEN LOC

PRECINCT SUPPLY: STATUS OF PROJECTS

PRECINCT SUPPLY: STATUS OF PROJECTS

• All the precinct project have been report by LOC and Stadiums as complete.

• Department is undertaking site visits to audit the precinct readiness in terms of FIFA specifications.

CONCLUSIONS

• Grid Supply: – 7 out of 9 grid projects completed

• Mbombela to be completed by end May 2010.• Rustenburg to commission the alternative plan

by end May 2010.

• Precinct Supply: – All precinct supply to reported to be completed as

of 15 May 2010.– DoE to do site visit to confirm before end May 2010.

THANK YOU

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